DENTON, Texas--(BUSINESS WIRE)--Sally Beauty today updated customers on its ongoing investigation of a
data breach incident and on efforts to provide support to any customers
who may have been affected by the incident. The scope of the incident
has not been fully determined. However, because of our commitment to
protecting our customers we are offering one free year of credit
monitoring and identity-theft protection for those customers who may
have been affected by the incident.

“Our customers remain our top priority,” said Gary Winterhalter,
Chairman, President and CEO. “Instructions for this service can be found
through our website, sallybeautyholdings.com.”

As we previously announced, on March 5, 2014, our systems detected an
unauthorized intrusion into our Sally Beauty Supply LLC network. Over
the last several weeks, we have been comprehensively investigating the
security incident with the assistance of our advisers. Based on the
investigation, we previously reported that, although we would not
speculate on the scope of the incident, we discovered evidence that
fewer than 25,000 records containing card-present (track 2) payment card
data may have been illegally accessed on our system. As a result of the
continuing investigation, we now understand that a larger number of
additional records containing payment card data may have been illegally
accessed and removed from our systems.

As we have said previously, we will not speculate on the scope of our
recent data security incident until the forensic review progresses
because experience with such incidents at other retailers has taught
that it is difficult to ascertain the extent of a data breach incident
until the required forensic review is complete.

We will continue to provide updates regarding the status of the
investigation and the steps we will be taking to assist any customers
who may have been affected by the incident through our website,
sallybeautyholdings.com. We will provide appropriate notifications to
customers who may have been affected by the incident and others as the
facts develop and we learn more.

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. (NYSE: SBH) is an international specialty
retailer and distributor of professional beauty supplies with revenues
of $3.6 billion annually. Through the Sally Beauty Supply and Beauty
Systems Group businesses, the Company sells and distributes through
4,700 stores, including approximately 200 franchised units, throughout
the United States, the United Kingdom, Belgium, Chile, France, the
Netherlands, Canada, Puerto Rico, Mexico, Ireland, Spain and Germany.
Sally Beauty Supply stores offer up to 10,000 products for hair, skin,
and nails through professional lines such as Clairol, L’Oreal, Wella and
Conair, as well as an extensive selection of proprietary merchandise.
Beauty Systems Group stores, branded as CosmoProf or Armstrong McCall
stores, along with its outside sales consultants, sell up to 10,000
professionally branded products including Paul Mitchell, Wella,
Sebastian, Goldwell, Joico, and Aquage which are targeted exclusively
for professional and salon use and resale to their customers. For more
information about Sally Beauty Holdings, Inc., please visit
sallybeautyholdings.com.

Cautionary Notice Regarding Forward-Looking Statements

Statements in this news release and the schedules hereto which are not
purely historical facts or which depend upon future events may be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Words such as “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,”
“could,” “may,” “should,” “will,” “would,” or similar expressions may
also identify such forward-looking statement.

Readers are cautioned not to place undue reliance on forward-looking
statements as such statements speak only as of the date they were made.
Any forward-looking statements involve risks and uncertainties that
could cause actual events or results to differ materially from the
events or results described in the forward-looking statements,
including, but not limited to, risks and uncertainties related to: the
highly competitive nature of, and the increasing consolidation of, the
beauty products distribution industry; anticipating changes in consumer
preferences and buying trends and managing our product lines and
inventory; potential fluctuation in our same store sales and quarterly
financial performance; our dependence upon manufacturers who may be
unwilling or unable to continue to supply products to us; the
possibility of material interruptions in the supply of beauty supply
products by our manufacturers or third-party distributors; products sold
by us being found to be defective in labeling or content; compliance
with laws and regulations or becoming subject to additional or more
stringent laws and regulations; product diversion; the operational and
financial performance of our franchise-based business; the success of
our e-commerce business; successfully identifying acquisition candidates
and successfully completing desirable acquisitions; integrating acquired
businesses; opening and operating new stores profitably; the impact of
the health of the economy upon our business; the success of our cost
control plans; protecting our intellectual property rights, particularly
our trademarks; the risk that our products may infringe on the
intellectual property of others; conducting business outside the United
States; disruption in our information technology systems, including as a
result of natural or man-made events (caused by us, by our service
providers or others) or by computer viruses, or physical or electronic
break-ins; reports that our information systems were breached; a
significant data security breach, including misappropriation of our
customers’ or employees’ personal information, the potential costs
related thereto, which may include, among others, liabilities to payment
card networks for reimbursements of credit card fraud and card
reissuance costs, including fines and penalties, liabilities from
governmental investigations or litigation, legal, forensic and
consulting fees and expenses, and costs relating to remediation actions,
and the negative impact on our reputation and loss of confidence of our
customers, suppliers and others; a failure to detect, determine the
extent of and appropriately respond to a significant data security
breach; costs and diversion of management attention required to
investigate and remediate a data security breach, including any
governmental investigations or litigation relating thereto; our ultimate
determination of the scope and severity of the recent data security
breach; severe weather, natural disasters or acts of violence or
terrorism; the preparedness of our accounting and other management
systems to meet financial reporting and other requirements and the
upgrade of our financial reporting system; being a holding company, with
no operations of our own, and depending on our subsidiaries for cash;
our substantial indebtedness; the possibility that we may incur
substantial additional debt, including secured debt, in the future;
restrictions and limitations in the agreements and instruments governing
our debt; generating the significant amount of cash needed to service
all of our debt and refinancing all or a portion of our indebtedness or
obtaining additional financing; changes in interest rates increasing the
cost of servicing our debt; the potential impact on us if the financial
institutions we deal with become impaired; and the costs and effects of
litigation.

Additional factors that could cause actual events or results to differ
materially from the events or results described in the forward-looking
statements can be found in our most recent Annual Report on Form 10-K
for the year ended September 30, 2013, as filed with the Securities and
Exchange Commission. Consequently, all forward-looking statements in
this release are qualified by the factors, risks and uncertainties
contained therein. We assume no obligation to publicly update or revise
any forward-looking statements.